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terminated, and the Escrowed Funds or the letter of credit will be returned to Developer subject to all costs that the City is required to pay pursuant to statute or other costs incurred in connection with such eminent domain proceeding. (3) If under any circumstances the City is required to "quick take" the Development Property, the Developer shall pay the valuation amount needed to acquire the Development Property in the eminent domain proceeding. Section 3.4. Issuance of Tax Increment Bonds. The City agrees to exercise its best efforts to take all steps necessary to issue the Tax Increment Bonds, prior to the respective Commencement Date, in an amount sufficient to finance the Public Improvements. The obligation of the City to issue the Tax Increment Bonds shall be subject to the limitations provided in Section 3.5 of this Agreement. Section 3.5. Limitations on Financial Undertakings ofthe City. Notwithstanding the provisions of Section 3.4, the City shall issue the Tax Increment Bonds subject to the following conditions precedent: (1) The City is entitled under Section 10.02 of this Agreement to exercise any of the remedies set forth therein as a result of an Event of Default; and (2) There has been, or there occurs, a substantial change for the worse in the financial resources and ability of the Developer, or a substantial decrease in the financing commitments secured by the Developer for construction of the Minimum Improvements, which change(s) makes it substantially more likely, in the reasonable judgment of the City, that the Developer will be unable to fulfill its covenants and obligations under this Agreement. Section 3.6. Use of Tax Increment Bond Proceeds. (1) The City's obligation to disburse proceeds of Tax Increment Bonds to the Developer for the costs of the installation of the Public Improvements shall be subject to satisfaction of the following conditions precedent: (a) The Developer shall be in material compliance with all the terms and provisions of this Agreement; (b) The Developer shall have submitted to the City Construction Plans for the Minimum Improvements and such Construction Plans shall have been approved by the City pursuant to Section 5.2 of this Agreement; (c) The Developer shall furnish the City evidence, in a form satisfactory to the City such as a letter of commitment from a bank or other lending institution, that the Developer has firm commitments for financing for the acquisition of the Development Property and construction financing for the Minimum Improvements in an amount sufficient, together with equity commitments, to acquire the Development Property and complete the Minimum Improvements in conformance with the Construction Plans, or 13